Eli Lilly & Co. Takes Action to Reduce Cost of Insulin for Patients in the U.S.

Eli Lilly & Co. announced Wednesday that it will reduce prices for some of its older insulins and expand a cap on costs insured patients pay when they fill prescriptions.

The move comes in response to the Inflation Reduction Act, which imposed a $35 monthly cap on the out-of-pocket cost of insulin for seniors enrolled in Medicare. Eli Lilly said it will cut the list price for its most commonly prescribed insulin, Humalog, and for another insulin, Humulin, by 70% in the fourth quarter.

The cost of insulin in the U.S. is notoriously high compared to other countries. The Rand Corporation, a public policy think tank, estimated that in 2018, the average list price for one vial of insulin in the U.S. was $540.

The changes announced by Eli Lilly will provide critical relief to people with diabetes who can face annual costs of more than $1,000 for insulin they need in order to live. The drugmaker said the cap on out-of-pocket costs will take effect immediately.

Eli Lilly’s announcement is a step in the right direction for those struggling to afford the life-saving medication. However, the high cost of insulin in the U.S. is still a major issue that needs to be addressed.